Saudi Arabia Commercial Vehicle Market – Size, Share, Trends, Opportunity, and Forecast, Segmented By Propulsion (ICE, Electric, Hybrid), By Vehicle Type (Light Commercial Vehicle, Medium Commercial Vehicle, Heavy Commercial Vehicle), By Region, By Competition, 2020-2030F

Market Overview:

The Saudi Arabia Commercial Vehicle Market was valued at USD 7.81 Billion in 2024 and is expected to reach USD 9.95 Billion by 2030 with a CAGR of 4.12% during the forecast period. The commercial vehicle market in Saudi Arabia is witnessing strong growth due to the expansion of industrial, construction, and logistics sectors. Demand for trucks, vans, and buses is increasing as businesses modernize fleets to meet efficiency and capacity needs. Government-backed infrastructure development programs and public transportation investments are creating favorable conditions for vehicle sales. Fleet operators are also showing interest in upgrading to advanced, fuel-efficient models that meet stricter emission norms and reduce operational costs.

Market Drivers

Expansion of Logistics and E-Commerce Operations

The rapid growth of e-commerce and the evolution of logistics networks are significantly boosting demand for commercial vehicles. As online retail continues to grow, companies require more delivery vans, trucks, and last-mile transport solutions to meet rising customer expectations for fast and reliable delivery. Logistics companies are increasing their vehicle fleets to ensure efficient warehousing, inventory movement, and distribution across vast geographic areas. This surge in transportation needs directly correlates with the demand for medium and heavy-duty commercial vehicles, especially those with better load handling and fuel efficiency. Growth in cross-sector logistics partnerships is also prompting fleet expansions and upgrades. Companies are optimizing delivery routes and investing in modern, connected vehicles that improve delivery timelines and service consistency. For instance, In Q4 2024, Saudi Arabia’s e-commerce sector recorded a 10% year-on-year growth, reaching 40,953 registered businesses, with Riyadh leading at 16,834. The logistics sector surged 82% in new records, totaling 16,561, while application development saw a 36% rise to 15,775 registrations. The fintech sector also grew 12% with 3,152 new records. These figures align with Saudi Arabia’s Vision 2030 goals to expand digital commerce, boost online payments to 70%, and raise e-commerce’s share of retail to 80%, reflecting the Kingdom’s broader push toward digital diversification and innovation-led economic growth.

Infrastructure and Construction Sector Growth

Commercial vehicles are integral to supporting construction activities, from transporting building materials to mobilizing heavy equipment across job sites. The continuous growth in infrastructure development such as roadways, industrial parks, airports, and housing requires a robust fleet of trucks, tippers, and other heavy commercial vehicles to meet operational demands. Construction companies rely on these vehicles for daily logistics, which increases demand for durable, high-capacity models. As timelines for project delivery become more stringent, reliability and fleet uptime take precedence, pushing businesses to invest in newer, more efficient vehicle fleets. For instance, Saudi Arabia will invest USD 1 trillion in infrastructure by 2030 to boost non-oil sector growth, according to Economy Minister Faisal Alibrahim. The plan aligns with Vision 2030, driven by PIF-led innovation, industry development, and public-private partnerships.

Rising Demand for Fleet Modernization

Many fleet operators are now focusing on upgrading their commercial vehicles to improve fuel efficiency, reduce downtime, and comply with tightening emission norms. Aging fleets lead to higher maintenance costs, lower reliability, and increased safety risks. As competition intensifies in transportation and logistics industries, businesses recognize the importance of reliable and technologically advanced fleets to maintain service quality and reduce total cost of ownership. Modern commercial vehicles come equipped with telematics, GPS tracking, automated diagnostics, and driver assistance systems, which improve route planning, fuel consumption, and vehicle longevity. Government regulations targeting environmental sustainability and safety compliance further compel fleet owners to phase out older vehicles. In response, vehicle manufacturers are offering trade-in incentives, lease options, and value-added services to attract commercial customers seeking modernization.  For instance, during a five-day visit to Saudi Arabia in May 2025, FAW TRUCKS secured nearly 10,000 truck orders, including a record three-year MoU for 7,500 units with distributor TJT and additional agreements for logistics and infrastructure applications. The visit emphasized Saudi Arabia’s strategic role in FAW’s global expansion, with plans to offer localized products, digital fleet solutions, and aftersales support as part of its “SPRINT 2030” strategy, aligning with the Belt and Road Initiative and Vision 2030 goals.

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Key Market Challenges

High Initial Acquisition Costs

The upfront cost of commercial vehicles remains a significant barrier for fleet operators and small businesses. Purchasing new trucks, vans, or heavy-duty vehicles involves a considerable capital investment, especially for models equipped with advanced technology and safety features. While these modern vehicles offer long-term savings in fuel and maintenance, the high initial price tag can deter many buyers from upgrading or expanding their fleets. Financing options often carry restrictive terms or require substantial down payments, which further complicates access for smaller players. Businesses may delay procurement decisions or opt for used vehicles that do not meet current performance or environmental standards. This financial strain becomes even more critical in cost-sensitive sectors like agriculture, construction, and retail logistics, where operating margins are often tight.

Inadequate After-Sales Support and Spare Parts Availability

A significant obstacle to the commercial vehicle market's expansion lies in the inconsistency and limitations in after-sales service networks. Fleet owners require prompt access to maintenance, repair services, and spare parts to minimize vehicle downtime and ensure operational continuity. Delays in repairs or difficulty sourcing components lead to service disruptions, revenue loss, and increased operational stress. Smaller towns and remote service areas often face acute shortages of certified technicians and replacement parts, which disproportionately affects long-haul transport operators. The lack of service infrastructure discourages potential buyers from investing in newer models, particularly those with advanced electronics and engine configurations requiring specialized maintenance. A fragmented service network also undermines customer trust in vehicle brands and limits loyalty.

Key Market Trends

Integration of Telematics and Smart Fleet Management

Fleet operators are increasingly adopting telematics systems and smart fleet management technologies to enhance operational control, reduce costs, and improve vehicle utilization. These digital solutions offer real-time insights into vehicle location, fuel usage, engine performance, driver behavior, and maintenance schedules. By integrating telematics into their operations, companies can optimize delivery routes, prevent unauthorized vehicle use, and reduce idle times. Predictive maintenance capabilities help identify potential mechanical issues before they become serious problems, lowering repair costs and reducing downtime. Driver behavior monitoring contributes to improved road safety and helps reduce insurance premiums. Cloud-based platforms enable centralized fleet tracking and analysis, making it easier for businesses to scale operations across multiple regions. Telematics also support regulatory compliance by providing automated reporting and vehicle diagnostics aligned with safety standards.

Growing Interest in Alternative Fuel Commercial Vehicles

Rising environmental awareness and regulatory pressure are pushing commercial fleet owners to explore cleaner energy alternatives such as electric, hybrid, and compressed natural gas (CNG) vehicles. Businesses are evaluating long-term cost benefits associated with lower fuel and maintenance expenses, while also aligning with sustainability goals. Electric commercial vehicles, though still emerging in heavy-duty segments, are being tested for light delivery operations, especially in urban settings. Advancements in battery technology, charging infrastructure, and government incentives are gradually reducing the barriers to adoption. 

Rise of Leasing and Subscription-Based Fleet Models

Commercial vehicle buyers are increasingly adopting leasing and subscription-based ownership models as flexible alternatives to outright purchase. These models offer lower upfront costs, predictable monthly payments, and the ability to upgrade vehicles more frequently, making them attractive to both startups and large logistics operators. Leasing helps preserve cash flow and provides access to new vehicles without the burden of depreciation or resale. Subscription services extend this model by bundling maintenance, insurance, and telematics into a single monthly package, simplifying fleet management. Businesses can scale fleets up or down based on operational needs, which supports agility in rapidly changing markets. 

Segmental Insights

Vehicle Type Insights

In 2024, the light commercial vehicle (LCV) segment dominated the Saudi Arabia commercial vehicle market, driven by its versatility, lower operating costs, and widespread applicability across various industries. LCVs are widely used in urban logistics, small-scale transportation, and last-mile delivery, which have seen significant growth due to expanding retail, e-commerce, and service-based sectors. These vehicles offer easier maneuverability in congested city environments and require less investment compared to heavier models, making them ideal for small businesses and fleet startups. Their ability to efficiently transport goods within short distances without compromising fuel economy has made them the preferred choice for a wide range of applications, including cargo transport, passenger movement, and utility services. The demand for refrigerated vans, flatbed pickups, and delivery vans has further contributed to the LCV segment’s strong performance.

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Region Insights

In 2024, the Northern and Central region led the commercial vehicle market in Saudi Arabia due to its concentration of industrial zones, commercial hubs, and infrastructure projects, especially around Riyadh. As a major logistical and administrative center, the region saw strong demand for light, medium, and heavy-duty trucks to support trade, construction, and municipal operations. Extensive infrastructure investments and growing commercial activity drove fleet expansion among logistics providers and small operators, making the Central region the core market for new and replacement vehicles. For instance, Saudi Arabia is advancing 24 major megaprojects, including a USD 346 million entertainment complex in Abha covering 79,000 m², projected to attract 5 million visitors annually and contribute approximately USD 1.07 billion to GDP by 2030.

The Eastern region maintained a strong position, supported by its extensive energy sector and industrial base. Demand for heavy-duty vehicles remained high due to the need for petroleum transport, equipment handling, and supply chain operations. Industrial transport, combined with activity in export zones and port cities, contributed to growing vehicle needs. Long-distance hauling and challenging terrain further pushed the requirement for durable and high-capacity trucks, particularly in sectors supporting oil and gas logistics.

The Western region also showed significant demand, driven by urban growth and religious tourism in key cities. Light commercial vehicles dominated the segment due to their use in shuttle transport, logistics, and city services. Infrastructure expansion and hospitality developments boosted demand for medium and heavy-duty vehicles to support construction and supply delivery. A growing mix of tourism, retail, and municipal needs continued to fuel vehicle deployment across the region.

Recent Developments

• ​In 2025, Stellantis Middle East launched the CustomFit program to enhance light commercial vehicle solutions through certified conversions in Saudi Arabia, UAE, and Kuwait, offering tailored options like mobile offices, ambulances, and refrigerated units.
• In 2024, Saudi Arabia launched the King Salman Automotive Cluster in KAEC, aiming to boost GDP by $24.5 billion by 2035. The project supports local manufacturing, job creation, and global partnerships under Vision 2030.
• ​In 2024, Tata Motors launched its first AMT truck, the Prima 4440.S, in Saudi Arabia at the HEAT Show. Powered by a 400 bhp Euro-V engine, it targets heavy-duty transport with enhanced efficiency and comfort.
• In 2024, Mullen Automotive began shipping 300 commercial EVs to Volt Mobility under a $210 million deal for 3,000 units, targeting GCC markets, including Saudi Arabia, for fleet leasing.

Key Market Players

• Toyota Motors Corporation
• Isuzu Motors Saudi Arabia Company Limited
• Mitsubishi Fuso Truck and Bus Corporation
• Hino Motors Limited
•  Ford Motor Company
• Hyundai Motor Company
• MAN Truck and Bus Middle East
• Volvo Trucks Corporation and Volvo Bus
• Mercedes-Benz KSA Commercial Vehicles
• Ashok Leyland

Report Scope:

In this report, the Saudi Arabia Commercial Vehicle Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•      Saudi Arabia Commercial Vehicle Market, By Propulsion:

o    ICE

o    Electric

o    Hybrid

•      Saudi Arabia Commercial Vehicle Market, By Vehicle Type:

o    Light Commercial Vehicle

o    Medium Commercial Vehicle

o    Heavy Commercial Vehicle

•       Saudi Arabia Commercial Vehicle Market, By Region:

o    Northern & Central

o    Western

o    Southern

o    Eastern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Saudi Arabia Commercial Vehicle Market.

Available Customizations:

Saudi Arabia Commercial Vehicle Market report with the given market data, Tech Sci Research offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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